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Jul 31, 2024

Zoom Q2 2025 Earnings Report

Zoom's Q2 2025 financial results were reported, showing a slight increase in revenue and strong growth in operating cash flow.

Key Takeaways

Zoom Video Communications announced its financial results for the second quarter of fiscal year 2025, with total revenue reaching $1,162.5 million, a 2.1% increase year-over-year. The company's operating cash flow grew by 33.7% year-over-year, and free cash flow increased by 26.2%.

Total revenue for the second quarter was $1,162.5 million, up 2.1% year-over-year.

Enterprise revenue reached $682.8 million, a 3.5% increase year-over-year.

GAAP operating margin was 17.4%, and non-GAAP operating margin was 39.2%.

Operating cash flow increased by 33.7% year-over-year, and free cash flow increased by 26.2%.

Total Revenue
$1.16B
Previous year: $1.14B
+2.1%
EPS
$1.39
Previous year: $1.34
+3.7%
Customers > $100k TTM Revenue
3.93K
Previous year: 3.67K
+7.1%
Net Dollar Expansion Rate
98%
Previous year: 109%
-10.1%
Gross Profit
$877M
Previous year: $872M
+0.6%
Cash and Equivalents
$1.54B
Previous year: $1.38B
+11.5%
Free Cash Flow
$365M
Previous year: $289M
+26.2%
Total Assets
$10.5B
Previous year: $8.92B
+17.8%

Zoom

Zoom

Forward Guidance

Zoom provided guidance for the third quarter of fiscal year 2025 and full fiscal year 2025.

Positive Outlook

  • Third quarter total revenue is expected to be between $1.160 billion and $1.165 billion.
  • Third quarter revenue in constant currency is expected to be between $1.162 billion and $1.167 billion.
  • Third quarter non-GAAP income from operations is expected to be between $438.0 million and $443.0 million.
  • Third quarter non-GAAP diluted EPS is expected to be between $1.29 and $1.31.
  • Full fiscal year free cash flow is expected to be between $1.580 billion and $1.620 billion.